Unbound Share Discussion Threads

[rambutan2] 18/4/2018 21:00

Am very much not a fan, but for the record:

Chairman's Statement

During the period the Company continued to pursue its investment strategy through its shareholding in Electra Private Equity PLC ("Electra").

At 31 December 2017, the net asset value attributable to shareholders of the Company was GBP82.4 million (2016: GBP487.5 million) or 26.20 pence per share (2016: 154.99 pence per share) (see note 12). The Company's net asset value was based on the closing price of 935.5 pence as at 31 December 2017 for the shares of Electra. As at the year-end SIGB, LP held approximately 29.90% of Electra through ordinary shares. The ownership level remains the same as at the date of this letter.

Electra has realised a significant number of its investments during the past 24 months, resulting in the accumulation of excess cash balances. Electra distributed GBP1.7 billion of this excess to shareholders through dividends in May, July, and December 2017. Following receipt of the distributions from Electra, the Company paid three dividends to its shareholders totalling 143.5 pence per share. I am pleased to report that these three dividends returned GBP451 million to shareholders during 2017.

On 1 June 2017, Electra's internal executive management assumed responsibilities from the former outsourced investment manager. Phase II of Electra's Strategic Review commenced at this date and was announced in October 2017. Electra announced that it would no longer participate in private equity. Going forward, the company would institute an optimised capital allocation policy measuring prospective returns on shareholders' capital versus returns of capital to shareholders.

On 7 December 2017, Electra announced its fiscal 2017 results noting that its 30 September 2017 net asset value per share was 1,074 pence per share, after the payment of the dividend on 1 December. Cash and assets sold but not yet closed represented 30% of net asset value. Electra also noted that, before the deduction of marketability discounts, the comparable net asset value was 1,683 pence per share.

During the year the Company repaid the remaining GBP20 million outstanding principal balance on the revolving loan facility with HSBC Bank plc (the "Facility"). Subsequently the Company cancelled the Facility and as a result has no borrowings.

Pursuant to its existing authority, the Investment Manager may sell, short or otherwise dispose of all or a part of such shares held in Electra or purchase additional securities at any time.

Details of Related Party Transactions are contained in Note 15 of the Notes to the Condensed Consolidated Financial Statements.

We are grateful for your continued support and will keep you informed of the status of our investment as it develops.

[topvest] 23/10/2017 20:48

Agreed. They don't care!
This was a great investment trust with a truly impressive record.
Unfortunately its game over for a quick buck! Very tax inefficient return of cash for those not holding in an ISA.

[zangdook] 23/10/2017 12:11

"Consistent with our stated aim to return excess capital to shareholders, I am delighted to announce a further special dividend"

This is quite outrageous. Dividends are income for tax purposes, not return of capital. The man claims to be looking after shareholders but he's only looking after corporate shareholders. He's handing over substantial chunks of our investments to HMRC.

[horndean eagle] 23/10/2017 08:50

fwiw i imagine photobox in at a pretty conservative amount so should lead to marked uplift. TGI trickier as de-rating across sector likely to kill off much buying interest for time being. Still ELTA have track record for being conservative on valuations so hopefully room for maneuver

[grahamg8] 23/10/2017 07:47

Will be left with 212p cash plus 111p to come from incomplete sales. But we probably need to wait a while before another dividend. Need to sell one or more of the remaining larger investments or the portfolio as a job lot.

[zangdook] 17/10/2017 19:07

I wonder if there's something going on in the background to make the price start to recover. It almost looks like a shallow bowl formation.

[grevis] 17/7/2017 12:15

Dividend now in my account. Shares now on the rise!

[stewart64] 17/7/2017 09:12

I got my dividend electronically on Friday, didn't reinvest it in Electra.

Over half the assets sold off so very difficult to make a judgement going forward . If you believe the NAV it's trading at a discount.

[zangdook] 14/7/2017 15:05

depends on your broker. HL have paid it into accounts already.

[grevis] 14/7/2017 14:28

I would be surprised if anyone has had this dividend today as it usually takes several days to clear into ones account. Last time it took approximately 5 days.

[stewart64] 14/7/2017 12:13

Mega Dividend hit share accounts this morning, thought some of this might be reinvested forcing up the price...apparently not.

This is one of the few investment trusts trading at below NAV, the reason is that paying back capital in dividends is playing havoc with personal tax and new investors are giving it a miss lest they keep this up.

Share had been punished by about 8% this summer dividend adjusted.

[kingmidas2] 13/6/2017 19:33

Were you so lucky? Yet another special dividend (ex on 8th June). 914p per share.

[cambium] 08/6/2017 08:45

What happened here? Lucky I sold after the divi

[panic investor] 27/3/2017 11:08

what is the catch here ? 50% divi looks stunning and I would be holding in a SIPP and ISA ?

I realise there may be some sellers due to tax reasons before the date but anything else I'm missing ?

thanks in advance

[topvest] 24/3/2017 21:33

Electra Partners should start another investment trust. I would invest.

[topvest] 24/3/2017 21:33

I see that Citywire has published an article stating that private investors are really unhappy. The company is run by a short-term bunch of greedy individuals in my view. Electra were paid very handsomely, but they were bloody good. I have zero confidence that the new Board can return anything like the 12% per annum over 20 years secured by Electra. No chance! Must be one of the few shares to announce such a capital return and the share price go down. The Board does not have private investors in mind at all.

[wolfcub] 24/3/2017 08:19

Thank you Topvest :) will give it some thought.

[topvest] 24/3/2017 08:14

I've never held my shares in an ISA as I'm a personalised CREST holder. Companies do normally show some awareness of making large dividends (which are returns of capital) tax efficient, but not here. I might sell anyway as they have destroyed this investment trust for short term profit. If you are in an ISA you are fine, but buying to get a dividend often leaves you with a capital loss so be careful.

[wolfcub] 24/3/2017 08:05

Sorry for being ignorant here. Already hold a few of these, but if I buy more before 7th april does that mean I would get the divi payment on those as well for my ISA? bit confused lol.

[ali47fish] 24/3/2017 07:57

sorry top if the investmnt is in isa -isn't that good- i am invested and thought i mighht buy and sell after the divi is paid- would appreciate your opinion

[topvest] 24/3/2017 07:21

What a rubbish announcement. A special dividend of that size is not tax efficient for me. Will need to sell the shares instead. Rubbish short term new management team wrecking a great trust in my view.

[arja] 19/3/2017 20:06

all I know is that it has a great looking char and NOR situation .

[ali47fish] 18/3/2017 12:41

what the latest on this trust anyone please

[topvest] 15/10/2016 14:22

Is anyone happy with this new Board? - I think the Sherborne lot are RUBBISH. Why are we throwing the towel in on an investment strategy that has returned 13% per annum long term. It really is a nonsense. I'm going to vote against everything they propose, not that it will make any difference! Looks like this is the end of Electra Partners and the team will disband.